Global| Aug 17 2011U.S. Mortgage Applications Jump Again With More Refinancing
by:Tom Moeller
|in:Economy in Brief
Summary
The total index of mortgage applications rose another 4.1% last week to 716.4 (March 16, 1990 = 100). Again, the gain was in applications to refinance which rose 8.0% after the prior week's near one-third jump. Applications to [...]
The total index of mortgage applications rose another 4.1% last week
to 716.4 (March 16, 1990 = 100). Again, the gain was in applications to refinance
which rose 8.0% after the prior week's near one-third jump. Applications
to purchase a home fell 9.1% and remained the lowest since 1997.
Applications for both fixed-rate and variable rate financing have risen
by one-third during the last few weeks, though the real strength has
been in fixed-rate loans as borrowers want to lock in low rates.
The effective rate on fixed-interest, conventional 15-year mortgages dropped during the last two weeks and set a new record low of 3.74%. The effective rate on 30-year fixed rate loans also fell to 4.49%. Interest rates on adjustable-rate financing remained relatively dear at 7.38%.
The Mortgage Bankers Association surveys between 20 to 35 of the top lenders in the U.S. housing industry to derive its refinance, purchase and market indexes. The weekly survey covers roughly 50% of all U.S. residential mortgage applications processed each week by mortgage banks, commercial banks and thrifts. The figures for weekly mortgage applications are available in Haver's SURVEYW database.
| MBA Mortgage Applications (SA, 3/16/90=100) | 8/12/11 | 8/05/11 | 7/29/11 | Y/Y % | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Total Market Index | 716.4 | 688.0 | 565.3 | -13.7 | 659.3 | 736.4 | 642.9 |
| Purchase | 167.5 | 184.2 | 185.8 | -1.1 | 199.8 | 263.5 | 345.4 |
| Refinancing | 3.915.5 | 3625.7 | 2,780.5 | -16.3 | 3,348.1 | 3,509.2 | 2,394.1 |
| 15-Year Mortgage Effective Interest Rate (%) | 3.74 | 3.76 | 3.78 | 4.26 (8/06) |
4.39 | 4.85 | 5.88 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
More Economy in Brief
